Diamondback, Arkansas Best Find Support At 10-Week

Diamondback Energy (FANG) and Arkansas Best (ABFS) are two Spotlight stocks finding support at their 10-week moving averages, a bullish sign.

Diamondback Energy pulled back slightly along with the market the past two weeks. But it found support at its 10-week moving average and bounced back near all-time highs in heavy volume. It's the stock's first 10-week pullback after clearing a 58.80 buy point. The bullish rebound usually sets up a follow-on opportunity to add shares, but a correction is not an ideal time for any purchases.

The Midland, Texas-based company, which came public in October 2012, has seen its share price surge nearly 300% since. This year, the stock has rallied more than 30% while the Nasdaq was down 3% through Thursday's close. Late Thursday, the company said production in Q1 rose 30% from Q4 to 13.6 million barrels of oil equivalent per day.

Diamondback reversed a 2012 loss with a per-share profit of $1.29 last year. Analysts forecast that earnings will jump 112% this year and 37% in 2015. The driller is one of the biggest players in the Permian Basin, which is expected to be the fastest-growing U.S. oil-producing area through next year.

Most domestic oil and gas explorers have been enjoying a nice run as they ride the U.S. oil-shale boom. The group ranked No. 31 among IBD's 197 industry groups in Thursday's issue, up from No. 61 six weeks ago.

Arkansas Best continues to find support at its 10-week line since emerging March 6 from a three-month consolidation past 36.05. It's been trading mostly sideways since and remains within buy range. A 97 Relative Strength Rating lifts it to No. 2 in its 20-stock Transportation-Truck group.

Its Earnings Per Share Rating lags a bit at 78, as the trucker lost money in three of the past five years. Consensus estimates call for a triple-digit gain to $1.98 a share this year and a 31% increase the next. Revenue grew between 8% and 15% the past four years.

Diamondback Energy (FANG) and Arkansas Best (ABFS) are two Spotlight stocks finding support at their 10-week moving averages, a bullish sign.

Diamondback Energy pulled back slightly along with the market the past two weeks. But it found support at its 10-week moving average and bounced back near all-time highs in heavy volume. It's the stock's first 10-week pullback after clearing a 58.80 buy point. The bullish rebound usually sets up a follow-on opportunity to add shares, but a correction is not an ideal time for any purchases.

The Midland, Texas-based company, which came public in October 2012, has seen its share price surge nearly 300% since. This year, the stock has rallied more than 30% while the Nasdaq was down 3% through Thursday's close. Late Thursday, the company said production in Q1 rose 30% from Q4 to 13.6 million barrels of oil equivalent per day.

Diamondback reversed a 2012 loss with a per-share profit of $1.29 last year. Analysts forecast that earnings will jump 112% this year and 37% in 2015. The driller is one of the biggest players in the Permian Basin, which is expected to be the fastest-growing U.S. oil-producing area through next year.

Most domestic oil and gas explorers have been enjoying a nice run as they ride the U.S. oil-shale boom. The group ranked No. 31 among IBD's 197 industry groups in Thursday's issue, up from No. 61 six weeks ago.

Arkansas Best continues to find support at its 10-week line since emerging March 6 from a three-month consolidation past 36.05. It's been trading mostly sideways since and remains within buy range. A 97 Relative Strength Rating lifts it to No. 2 in its 20-stock Transportation-Truck group.

Its Earnings Per Share Rating lags a bit at 78, as the trucker lost money in three of the past five years. Consensus estimates call for a triple-digit gain to $1.98 a share this year and a 31% increase the next. Revenue grew between 8% and 15% the past four years.

See Also

Hammered by falling oil prices and share prices, many U.S. drillers have seen short interest spike. Which exploration and production companies saw the biggest spikes in short interest in the latest tally from Jan. 15 to Jan. 30? Houston-based shale pioneer Southwestern Energy (NYSE:SWN) saw the ...

Several oil producers in shale formations in North Dakota and Texas spurted more than 2% on the stock market Friday, some after weeks of declines, tempering concerns that lower oil prices would dampen their prospects. They included Continental Resources (NYSE:CLR) and Whiting Petroleum (NYSE:WLL), ...

Pres. Barack Obama and Chinese Pres. Xi Jinping jointly announced a coordinated effort to cut carbon dioxide and other gases, but Canadian Solar (NASDAQ:CSIQ) shares fell on disappointing sales guidance, driving other solar stocks down. Canadian Solar said that its third-quarter earnings more than ...

Stocks opened to mild losses in mixed trade Wednesday, as company earnings reports fueled much of the early action. The Dow Jones industrial average and the S&P 500 each dipped 0.2%. The Nasdaq shed a bit less than 0.1%. The stock market today got started in mixed trade, down 3% on the NYSE and ...

Stocks turned higher in volatile early-afternoon trading after a rocky start. Techs, which were down the hardest Friday, led the rebound. The Nasdaq gained 0.5%, bumping up against its 200-day line breached Friday. It had been down 1.3% at Monday's low. The S&P 500 and the Dow Jones industrial ...

10/13/2014 01:31 PM ET

More Stock Spotlight Articles:

When a stock breaks out in a hesitant fashion, there are only two explanations. Either fund managers don't think much of the stock or the market is turning breakouts into a hard pump of the brakes. Blaming the market might sound like a dog-ate-my-homework excuse. However, sometimes the dog is the ...

Right now, the Stock Spotlight screen is heavy with stocks too extended to buy or too late-stage to provide a fresh buying opportunity. In a way, that's good. Individual investors who bought earlier breakouts are sitting on gains. As long as a stock isn't threatening to cycle back into a loss or ...

Even if you miss a leading stock when it breaks out from a base, it could go on to set up a three-weeks-tight pattern or another secondary buy opportunity. Tight trading action often is a sign of strength.Tableau Software (NYSE:DATA), which gapped up and soared 17% Feb. 5, is extended 6% from a ...

Buoyed by lower fuel costs, airlines have been flying high in recent months. Today we'll take a closer look at some of the top names in the stratosphere. Fuel prices the week of Feb. 13 were down 38% from a year earlier, says the International Air Transport Association. Transportation-Airline ...

Leading stocks can quickly become extended once they take off, but that doesn't mean investors should remove them from their watch lists. The stocks could set up another chance to buy. All stocks need time to digest their gains — in the process, often setting up a new basing pattern. ...

Select market data is provided by Interactive Data Corp. Real Time Services. Price and Volume data is delayed 20 minutes unless otherwise noted, is believed accurate but is not warranted or guaranteed by Interactive Data Corp. Real Time Services and is subject to Interactive Data Corp. Real Time Services terms. All times are Eastern United States. *Reflects real-time index prices.